Corporate Foreign Tax Credit, 1988: An Industry Focus · Corporation (IC-DISC) or a former DISC, taxable income attributable to the "foreign trade income" ofa Foreign Sales Corporation

Corporate Foreign Tax Credit, 1988:An Industry Focusby Karla M. Daronco and Kimberly A. Veletto

F

or 1988, U.S. corporations paid approximately$29.4 billion in taxes to foreign governments onalmost $99.9 billion of foreign-source taxable (net)

income. Although only 4,230 corporations, 0. 1 percent ofthe total number of corporations that filed U.S. incometax returns, claimed a foreign tax credit, the amount theyclaimed for 1988 reduced the total U.S. corporationincome tax liability by $27.1 billion, or 18.1 percent [1].Manufacturers, with a total foreign tax credit of nearly$21.9 billion accounted for 80.7 percent of the total credit.The integrated petroleum and non-electrical machinerymanufacturing industries claimed the largest amounts ofthe credit [2].

Not since the late 1970's had the total foreign tax creditclaimed exceeded the $25 billion mark (Figure A). Amajor factor behind the 21.7 percent increase in the creditclaimed between 1986 and 1988 was the explosive growthin foreign-source taxable income. For this period, foreign-source taxable income of corporations increased byalmost 51.8 percent, from $65.8 billion for 1986 to nearly$99.9 billion for 1988 [3].

Foreign Tax Credit: An OverviewU.S. corporations are subject to U.S. tax on their world-wide income. Income earned by these companies in aforeign country is generally taxed by the foreign country,as well as by the United States and could result in doubletaxation. Since 1918, U.S. tax law has allowed corpora-tions a credit to reduce U.S. income tax for taxes paid toforeign countries, in order to alleviate this situation

'Over the years, changes in the foreign tax credit provi-sions of U.S. tax law have often paralleled thedevelopment of U.S. business activities. For instance,when modem U.S. income taxation began in 1913, someU.S. corporations had operations in countries whereincome tax rates exceeded the U.S. tax rate. Corporationswould use these higher foreign taxes to offset theirdomestic tax liability. The Revenue Act of 1921 restrictedthe amount that could be claimed as a credit against theU.S. tax liability to an amount equivalent to the U.S. taxon foreign-source taxable income. This limitation wasdetermined by dividing foreign-source taxable incomeinto worldwide taxable income and applying the percent-age to the U.S. tax liability, before credits, on worldwideincome.

Corporations could, nevertheless, attempt to maximizetheir foreign tax credit by combining income fromoverseas investments (generally taxed at relatively low

Karla M. Daronco and Kimberly A. Veletto are economists withthe Foreign Returns Analysis Section. This article was preparedunder the direction of Chris Carson, Chief.

rates) with foreign-source income taxed at rates higherthan the domestic rate, to increase the ratio used tocompute the credit limit. For example, interest fromcertain foreign investments was often taxed at either verylow rates or not at all. Other types of foreign income, suchas manufacturing income or "active" rents and royalties,however, were often taxed at rates higher than the U.S.rate. By combining the "passive" foreign interest income(and lower foreign taxes paid) with other types of foreignincome (on which the tax was higher), more of the foreigntaxes that exceeded the U.S. tax rate could be creditedagainst the U.S. income tax because the limitation wasincreased by the interest income. In 1961, the U.S.Congress responded by establishing separate limitationson the foreign tax credit based on several differentcategories of foreign income.

Changes in the LawThe data for Tax Year 1988 reflect certain changes in theforeign tax credit provisions of U.S. tax law. The TaxReform Act of 1986 significantly expanded the priorsystem of separate income-type limitations while main-taining the principle of the overall foreign tax creditlimitation in lieu of a per-country limitation [4]. Theexpanded system of separate limitation income "baskets"is designed to prevent averaging of low-tax foreign-sourceincome with high-tax foreign-source income. The 1986Act also broadens the potential for allocating expenses toforeign sources.

For the tax years immediately preceding 1987, thecredit limitation was computed separately for five types or"baskets" of income. These baskets were for InternalRevenue Code section 904(d) interest income, dividendsfrom an Interest Charge-Domestic International SalesCorporation (IC-DISC) or a former DISC, taxable incomeattributable to the "foreign trade income" of a ForeignSales Corporation (FSQ, distributions from a FSC out ofearnings and profits attributable to foreign trade income,and all other income [5]. For tax years beginning after1986, a taxpayer must compute the foreign tax creditlimitation separately for nine types of income. Thesebaskets are for "passive income," financial servicesincome, high withholding taxinterest, shipping income,dividends from each non-controlled section 902 corpora-tion, dividends from an IC-DISCor former DISC, taxable incomeattributable to the foreign tradeincome of a FSC, distributionsfrom a FSC out of earnings and

Manufacturing

Industries accounted

for 80.7 percent of the

$27.1 billion total

foreign tax credit.

profits attributable to foreign 79

Corporate Foreign Tax Credit, 1988:An Industry Focus

Corporate Foreign Tax Credit, 1978 - 1988

Billions of dollars40

27.1

80

1978

36.8

1980 1982

Tax Year

trade income, and all other income [6].The sum of the foreign tax credits for each income type

comprises the total foreign tax credit that,can be claimed.Table I shows the foreign tax credit data arranged byincome type and also shows taxable income and foreigntaxes. If the actual taxes,paid, accrued, or deemed paidexceed the limitation, the excess can be carried back 2years, or carried forward 5 years, to be applied to theincome type for which the tax was paid, accrued ordeemed paid. In addition, participation in, or cooperationwith, an international boycott can reduce -the total foreigntax credit claimed. For 1988, international boycottparticipation reduced the foreign tax credit claimed by$1.3 mj,llion, or less than 0.01 percent of the-total.

Taxable uncomeWorldwide taxable income for all U.S. corporationsincreased 39 percent between 1986 and 1988. At $383.2billion for 1988, this in

'come was.higher than it had ever

been during the 1980's.Foreign-source taxable income reported by companies

claiming a foreign tax credit during the same time, grewby 52 percent and comprised over a quarter of theworldwide taxable income reported by.all U.S. corpora-tions. On a percentage basis, most industries experienced

1984 1986 1988

significant gains in. foreign-source taxable income duringthe 1986-1988 time period (Figure 13) [1]. For example,within wholesale trade and services, foreign-sourcetaxable income-climbed by 175 and 141 percent, respec-tively. Furthermore, most of the manufacturing groupshad significant increases in foreign income, the mostnotable being the motor vehicles manufacturing industrywhich had increased foreign-source income of 213percent, from $2.2 to $6.9 billion. However, foreign-source income of the integrated petroleum industrycontinued to decline, by $2.1 billion (approximately 13percent), continuing the trend started in the early 1980's.

Foreign Taxes,and Foreign Van CreditsFor 1988, the total of reported foreign taxes paid oraccrued was $9.3 billion. The amount of totaltaxes'deemed paid was $20.0 billion. The total of current-yearforeign taxes rose by 27.4 percent from the 1986 level to$29.3 billion for 1988. The effects of certain reductions intax and carrybacks or carryovers brought the total foreigntaxes available for credit to $31.6 billion.

The majority of the total foreign taxes paid or accruedfor 1988 came fromthe "all other income from sourcesoutside the United States" basket with, 78 percent of thetotal, or $7.3: billion. The financial services income basket


Figure B

Foreign-Source Taxable Income, by SelectedIndustrial Groups, 1986 and 1988[Money amounts are in millions of dollars]

Industry 1986 1988ercentageincrease

(1) (2) (3)All Industries ............................. $65,809 $99,875 61.8%

Agriculture, forestry and fishing .......... 89 69 -22.5Mining ................................................. 1,475 2,127 44.2Construction ....................................... 204 337 65.2Manufacturing, total ............................ 48,809 71,527 46.5

Food and kindred products ............. 2,030 3,955 94.8Chemicals and allied products ....... 7,744 9,947 28.4Petroleum (including integrated)and coal products ....................... 16,000 13,929 -12.9

Machinery, except electrical........... 9,597 14,150 47.4Electrical and electronicequipment ................................... 5,549 5,447 -0.2

Motor vehicles and equipment....... 2,169 6,793 213.2Transportation and public utilities ....... 1,702 2,869 68.6Wholesale trade ................................. 900 2,472 174.7Retail trade ......................................... 957 1,081 13.0Finance, insurance and real estate,

total ................................................. 10,620 16,884 59.0Banking .......................................... 8,107 12,199 50.5Insurance ........................................ 1,611 3,084 91.4

Services ..............................................1 1,043 . 2,509 , 140.6

accounted for $1.6 billion, or 17 percent of the totalamount claimed.

Certain industry groups reported an increase of over100 percent in current-year foreign taxes from 1986 to1988. These industry groups included motor vehicles andequipment, transportation and public utilities, wholesaletrade, insurance and services.

A concern to U.S. corporations is that the foreign taxesthey pay or accrue may exceed the foreign tax creditlimitation, resulting in an excess foreign tax creditposition [8]. This excess foreign tax credit situation arisesfor a variety of reasons. For instance, when the U.S.income tax rate is less than the foreign income tax rate,U.S. taxpayers will generally find themselves with excessforeign taxes because the limitation is usually equal to theU.S. tax rate times foreign-source taxable income.Secondly, the foreign tax credit separate income-typelimitation categories added by the 1986 Act may alsocause many U.S. corporations to find themselves in anexcess foreign tax credit position. After a corporation'sworldwide income is separated into U.S.-source incomeand foreign-source income, the foreign-source incomemust be subdivided into the different foreign-sourceincome categories or baskets and a separate foreign taxcredit limitation must be calculated for each income type[9]. This increases the likelihood of some companieshaving credit shortages in some income categories (e.g.,

the passive income category) and excess credits in otherincome categories (e.g., the "all other" or "generallimitation" basket of income) [101. For example, the high-taxed income rule of section 904(d)(2)(F) provides thatpassive income, which is subject to foreign tax at a rate inexcess of the U.S. tax rate, will be treated as generallimitation income, not passive income.

As a result, excess foreign tax credits associated withsuch "high-taxed" income are available only to reduce theU.S. tax on general limitation income. Because excessforeign tax credits in one income category cannot offsetcredit shortages in other categories, excess foreign taxcredits generally are of value to taxpayers only when theycan be carried back 2 years or for-ward 5 years to be usedagainst U.S. income taxes.

Also, the 2-year carryback of excess foreign tax creditsfrom post- 1986 Act tax years to pre- 1986 Act tax years islimited to the excess foreign tax credits that would haveresulted if the post-1986 Act tax rates were the same asthe 1986 rates. Consequently, only foreign taxes in excessof 46 percent may be carried back, as the maximum U.S.corporate income tax rate was reduced to 34 percent(effective in 1988) from 46 percent [11].

Changes between 1986 and 1988 resulting from the1986 Act are reflected in the foreign taxes reported andthe foreign tax credit claimed by each industry. Anindustry tabulation of foreign taxes and the foreign taxcredit is shown in Figure C. For most industries for 1986,almost all of the total foreign taxes could be claimed as aforeign tax credit. For 1988, the aggregated industry totalsof current-year foreign taxes exceeded the foreign taxcredit claimed for every industrial division exceptconstruction. (When the credit claimed exceeds thecurrent-year foreign taxes for an industry, this may reflectamounts of excess credits from previous years that werecarried forward to the year in the study.) In the "allindustries" total, current-year foreign taxes exceeded thetotal foreign tax credit claimed for 1988 by $2.3 billion,or 7.9 percent. In comparison, for 1986 current-yearforeign taxes exceeded the credit claimed by only $0.8billion, or 3.6 percent.

Industry Composition of the Foreign Tax CreditSome industries generate a greater percentage of theirincome abroad, and consequently claim a larger foreigntax credit than other industries, as shown by the industrydistribution of the foreign tax credit claimed for 1988, andthe distribution of the total U.S. income tax liability(Figure D). Manufacturing industries claimed 80.7percent of the $27.1 billion total foreign tax credit and71.6 percent of the $99.9 billion total foreign-sourcetaxable income, but they accounted forjust 51.8 percent 81

82


of the total U.S. income tax (after all credits, except theforeign tax credit). Other industrial divisions which had arelatively high share of the total U.S. income tax, claimedonly a small percentage of the total foreign tax credit.These included finance, insurance and real estate;transportation and public utilities; and wholesale andretail trade.

For the first time in the 1980's, U.S. corporationsengaged in manufacturing activities, excluding petroleum,were responsible for over half of the total foreign taxcredit claimed (almost 64 percent) as well as the totalforeign-source taxable income (nearly 58 percent). Table2 shows taxable income, foreign taxes and foreign taxcredit data arranged by industrial division. Table 3 showsthe same.data elements arranged by industrial divisionand by income type. Of this group, U.S. companiesoperating in the non-electrical machinery manufacturingindustry were the most dominant. These companiesclaimed nearly 21 percent of the total foreign tax credit,almost 19 percent of total foreign taxes paid and approxi-mately 20 percent of total foreign-source taxable incomeearned by U.S. companies in this "all other manufactur-ing" category.

SUMMSIDT'Me foreign tax credit fell from $22.3 billion for 1986 to$20.8 billion for 1987 before rising to $27.1 billion for1988. Worldwide taxable income, however, increasedsteadily, to a record high of $383.2 billion for 1988.

Foreign-source taxable income for "all industries" grewby 52 percent between 1986 and 1988. It declined inagriculture, forestry, and fishing; integrated petroleum;and electrical and electronic equipment manufacturing'industries; but made significant gain

's in all others.

For "all industries," current-year foreign taxes exceededthe total foreign tax credit claimed by $2.3 billion. Formost industries, the amount of current-year foreign taxesrose'from 1996'to I

-989 except for construction, petro-

leum (including integrated) and coal products, retail tradeand banking.

The "all other manufacturing" category accounted forthe largest percentage of the total foreign tax creditclaimed (63.9 percent) for 1988. Integrated petroleumcompanies claimed another 16.8 percent of -the totalcredit.

Oak sounm mud umhalonsThe 1988 statistics presented in this article were derivedfrom returns in the corporation Statistics of Incomesample of returns with accounting periods ending betweenJuly 1988 and June 1989 and with a foreign tax credit.The corporate sample included 77,664 returns chosen

UUMMG (3

Current-Year Foreign Taxes and Foreign TaxCredit, by Selected Industrial Groups, 1986 and1988[Money amounts are in millions of dollars]

Industry

All Industries...........Agriculture, forestry and

fishing ...........................

Mining ...............................

Construction ......................

Manufacturing, total ..........Food and kindred

products ....................Chemicals and allied

products ....................Petroleum (including

integrated) andcoal products ............

Machinery, exceptelectrical ....................

Electrical and electronicequipment .................

Motor vehicles andequipment.................

Transportation and publicutilities...........................

Wholesale trade ................Retail trade........................Finance, insurance

and real estate, total .....Banking.........................Insurance......................

Services ............................

Current-yearforeign t es

1986

0)$23,103

16832

7618,803

1988

(2)$29,427

22869

5023,739

807

3,023

7,081

3,628

1,295

985

224304373

2,1801,725

237

294

1,254

3,576

5,508

4,536

1,538

1,918

5157593

2,5131,382

685

624

Foreign tax

F 1-98E

L3)

credit1988

$22,261

13619

8218,094

763

3,071

7,071

3,092

1,498

591

(4)

$27,110

21

70392

21,887

1,270

3,071

4,566

4,561

1,422

1,978

232 420290 720

319

2,2621,770

236317

2,3711,329

646

578

(after Internal Revenue Service administrative processingbut before audit exarrdnation) from the approximately 3.6million active corporation income tax returns filed for taxYear 1988. Because some returns with foreign tax credit sthat were included in the 100 percent sample class for thisstudy were received too late to be included in the regularcorporate statistics, there are slight differences between,statistics presented here and those previously published inStatistics of Income - 1988, Corporation Income TaxReturns.. Estimates for these missing corporations,however, were used for the corporate statistics.

Sampling error is not considered to be a substantiallimitation of the data presented in this article, inasmuch asthe sample included all returns with $250 million or morein total assets. These returns accounted for 95.6 percent ofthe total foreign-source taxable income, 95.9 percent ofthe total foreign tax credit and 98.5 percent of the totalassets reported on returns with a foreign tax credit. Formore detailed information on the 1988 corporate sampledesign, see Section 3 of Statistics of Income - 1988,Corporation Income Tax Returns.


Figure D

Industry Composition of Income Tax and the Foreign Tax Credit, 1988

Total U.S. Income Tax, Before the Foreign Tax Credi~]

Transportation and Public Utilrti-l,--(12.9%)

Foreign Tax

All Other Industries(5.3%)

Wholesale and Retail Trade(3.8%)

Transportation and Public Utilitl(1.5%)

Finance, Insurance and Real Estate(8.7%)

Finance, Insurance and Real Estate(16.4%)

I Petroleum manufacturing Includes Integrated petroleum production and coal products.2 Total U.S. Income tax after all credits, except the foreign tax credit. 83

84


General 1.1mitations -The foreign tax credit is claimed under section 901 of theInternal Revenue Code. In accordance with the Code,corporations report their foreign income and tax data onForm 11 18, Corporation Foreign Tax Credit, in supportof the foreign tax credit claimed on Form 1120, U.S.Corporation Income Tax Return. These returns do notreflect adjustments made durirg'audit examination, whichdetermines the acceptability- of the foreign income andtaxes reported. Some corporations provide preliminarydata because complete information on their foreignoperations is often not available when they file their U.S.income tax returns. In addition, amended returns wereexcluded from the study.

Foreign income and taxes are underreported in thisarticle to the extent that they were not reported on Form1118. Some corporations did not file this form becausethey had no U.S. income tax to report and consequentlyno foreign tax credit to claim. Othersi chose to deduct theirforeign taxes from their gross income instead of taking thecredit, while some corporations simply failed to file theForm 1118 to support the foreign tax credit on theirreturns as originally filed. The amount of foreign incomeand taxes attributable to all of these returns is consideredto be minimal.

Explanation of Seleded TermsAdjustments to Total Taxable Income - This refers to thegeneral rules for computing the denominator of thelimitation fraction for each applicable separate income-type limitation. For specific examples of adjustments to"worldwide income," see "Instructions for Form 1118,Computation of Foreign Tax Credit - Corporations(revised January 1988)."

Current-year Foreign Taxes - Includes ~all taxes paidto foreign jurisdictions and all taxes deemed paid, but arenot include carrybacks or carryovers. ,

Net Income vs. Income Subject to TUx --,These termsas they appear in the tables of this article refer to netincome (or deficit) as the difference between grossreceipts and the:ordinary and necessary business.deduc-tions Allowed by the Code, and reflect not only actualreceipts but "constructive" receipts as well (i.e., certainincome from Controlled Foreign Corporations and theforeign dividend gross-up). For most corporations,income subject to tax consists of net income minus certain"statutory special deductions." For a more detailedexplanation, see Section 5 of Statistics of Income - 1988,Corporation Income Tax Returns.

Foreign Tax Credit Claimed vs. Foreign Tax Credit-These terms appear in the tables of this article as the total

foreign tax credit amount claimed on the U.S. Corpora-tion Income Tax Return, Form 1 120, as compared to thespecific foreign tax credit amount calculated for eachseparate income-type limitation appearing on the Corpo-ration Foreign Tax Credit, Form 1118.

Reduction in Taxes - This refers to the reduction oftax to be computed for each applicable separate income-type limitation under sections 90 1 (e), 9010), 907(a),908(a) and 6038. For specific information refer to"Instructions for Form 1118, Computation of Foreign TaxCredit - Corporations (revised January 1988)."

Taxes Deemed Paid - These are foreign taxes indi-rectly, or deemed, paid by a U.S. corporation. These."deemed paid" taxes were the taxes paid or accrued by arelated foreign corporation on the profits from -whichsome dividends were paid (or constructive distributionsmade) to the U.S. corporation.

Notes and References[1] Total U.S. corporation income tax liability, unless

otherwise stated, refers to total U.S. income tax, afterall credits, except the foreign tax credit.

[2] Petroleum industry refers to the integrated petroleum

[31

industry, i.e., all corporations primarily engaged inextraction, refining and marketing of crude petro-leum. It also includes coal products.

Statistics of Income studies on corporation foreign taxcredits and related information are generally con-ducted once every

*2 years. For this reason, the 1988

statistics are often compared to 1986 (not 1987)information. However, the amount of the credit istabulated every year and shown (Figure A).

[4] From 1932 through 196 1, corporations had tocalculate their.limitation on a per-country basis. Thiswas.done to prevent averaging across countries,

[51

whereby companies would attempt-to maximize theirforeign tax credit by combining. income taxed at lowrates in one foreign country with income fromanother foreign country, that was taxed at rates higherthan.the.U.S. rates.,Section 904(~) interest income generally includespassive interest income. (Examples of this type of

. income are portfolio stock dividends, passive corn-modity trading gains, gains from sales of stocks andsecurities and annuities.)

[61 Passiveincome is income that is generally considered"foreign personal holding company income" orpassive foreign investment income. However, passive


income does not include any income that would he inany other basket (except the "all other" incomebasket), any export financing interest, any incometaxed at a rate greater than the highest U.S. tax rate,and any foreign "oil and gas extraction income."Financial services income is generally incomederived from the active conduct of a banking,

[71

insurance, financing or similar business. Financialservices income does not include high withholdingtax interest or export financing interest. High with-holding tax interest is any interest subject to awithholding tax of at least 5 percent, but not includ-ing export financing interest. Shipping income is anyincome received by a person which would be "foreignbase company shipping income" under InternalRevenue Code section 954(f). Dividends from a non-controlled section 902 corporation are dividends froma foreign corporation, 10 to 50 percent of whosevoting stock is owned by the taxpayer. The foreigntax credit limitation for dividends from a non-controlled section 902 corporation must be computedseparately for each corporation which pays dividendsto a domestic corporation.

Some of this growth in foreign-source taxable incomemay be attributed to U.S. corporations payingdividends and Subpart F income on pre- 1988 earningsand profits from Controlled Foreign Corporations.

(8] Excess foreign tax credits are creditable foreign taxesin excess of the foreign tax credit limitation. There-

fore, they cannot be credited against the U.S. incometax.

[9] The purpose of the separate foreign tax creditlimitation categories is to prevent cross-crediting oftaxes, sometimes referred to as "averaging." The1986 Act reflects Congress' belief that, in somecases, the ability of U.S. taxpayers to average foreigntax rates for foreign tax credit limitation purposes(and thereby reduce or eliminate the residual U.S. taxon their foreign income) had undesirable conse-quences. Of most concern was that U.S. taxpayerswith excess foreign tax credits would have anincentive to place new investments abroad, ratherthan in the United States, when the income that thoseinvestments would generate would be taxed abroad atbelow-the-U.S. rates and the excess credits would beavailable to reduce or eliminate the U.S. tax on theincome. For a more detailed explanation of thereasons for change regarding the foreign tax creditlimitation see, Joint Comniittee on Taxation, GeneralExplanation of the Tax Reform Act of 1986 (H.R.3838, 9th Congress, Public Law 99-514), May 1987,pp. 861-862.

[10] Credit shortages exist when creditable foreign taxesare less than the foreign tax credit limitation.

I I ] Renfroe, Diane L., "Foreign Tax Credits After theTax Reform Act of 1986," Arthur Anderson & Co.,February 1990, p. 65.

85


Table I.-Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,by Income Type[All figures are estimates based on samples--money amounts are in thousands of dollars)

Income and taxes from returns with Form 1118 Computation offit n sup rt of foreign tax credit claimed foreign tax redit

Income Foreign Total Totaltype Number of Total Net income Income subject tax foreign taxes Reduction Carryover

returns assets (less deficit) to U.S. tax credit taxes paid deemed in taxesclaimed or accrued paid Total

(1) (2) (3) (4) (5) (6) (7) (8) (9)All Income types, total .............................. 4,230 6,329,613,336 240,666,9W 226,312,631 27,110,216 9,392,281 20,034,920 1,703,792 3,932,881Passive Income.................................. 635 2.474,303,566 155.241.298 147,333,794 20,282.162 139.018 267,946 6.037 64,137High withholding tax Interest..................... 371 2.273.932,229 72,286,763 68.078.216 9.424,536 46,275 1.750 (1) 13,930Financial services income..: ...................... 311 4.175.957.672 98,609,989 90.912,920 12.T79,972 1,620,718 802.709 236,457Shipping Income....................................... 32 693,787,014 33,065,703 32,306,131 4.687,222 30,257 6.692 14 1,129Dividends from each noncontrolled

section 902 corporation ....................... 400 3.124.206.551 133,822,966 126,004,468 19.422,924 167.468 689,218 296 56,255Dividends from an IC-DISC

or former DISC' * ' ' * ** '

47 360.043,405 19,737,975 18,886,902 2,068.330 3,480 2.189 2.230Distributions from a ~;i~ Or i. ;~.' i~~. :] 17 105,322,944 13,592.754 13,194,380 1,006,454 153'All other income fro

outside the Unitc 3,404 3,577.748.709 1 214,822,276 1 203,552.718 1 25.302,658 7,385,065 18.264,262 1,697-,445 3,558.743

Computation of foreign tax credit--Continued

Income Adi sted total Totaltype Carryover--Continued Total foreign taxable income taxable income

taxes from foreign from all1983 1984 1985 1986 1987 Year unknown sources sources(10) (11) (12) (13) (14) (15) (16) (17) (18)

All Income "s, total ............................... 469,384 409,818 419,530 203,511 225,455 2,206.1B4 31,656,290 99,675,060 226,638,649Passive income......................................... 12,983 3.100 3,014 45,040 465,064 3.831,348 147,449,658High withholding tax interest ..................... 3,716 10,214 61,955 334,823 68,337.ODOFinancial services income ......................... 170 12,745 25,499 22,675 38,890 136,478 2,659,885 16,304.283 91,099.718Shipping income....................................... 961 168 38.064 5T7,055 32,306,131Dividends from each noncontrolled

section 902 corporation....................... 16 25 113 6,038 50.063 912,645 2,395,681 126,171.855Dividends from an IC-DISC

or former DISC..................................... 151 268 28 28 28 1.728 7.900 87,913 18.886.902Distributions from a FSC or former FSC 153 381,651 13,194.380All other income from sources

outside the United States ..................... 469.063 396,789 380,996 177,594 172,809 1,961,492 27,510,624 75,962,3D8 203,688,921


Adjustments Total Total Reduction in Form 1118Income to taxable U.S. taxes Foreign credits credit due to foreign

type total income before Limitation tax with respect international taxtaxable (loss credits credit to sources boycott creditincome adjustments) of income operations claimed

(19) (20) (21) (22) (23) (24) (25) (26)All Income types, total .......................................................... 171.952 226,466,897 77,4SO,286 31,749,355 27,111,797 27,111,797 1,263 27,110,534Passive Income.................................................................... 122.974 147,326,684 50.374,120 1,328,265 441.592 20,283,411 1.249 20,282,162High withholding tax interest ................................................ 102.245 68.234,755 23,285,484 113,718 51,558 9,425,079 225 9,424,854Financial services income .............................................. : 1,997 91,097.720 31,232,257 3,532.427 2.388,503 12,780,514 225 12.780,290Shipping income ................................................................... 32,306,131 10,985,596 195,580 32.346 4,687,"7 225 4,687.222Dividends from each noncontrolled section 902

corporation....................................................................... 122,208 126,049.647 43,093.341 810.523 565,213 19,423,179 255 19,422.924Dividends from an IC-DISC or former DISC . -- 18,886,902 6,428,811 29,872 6,468 2,068.330 2,068,3301Distributions from a FSC or

'former FSC 13.194,380 4,486.371 129,775 153 1,006,541 87 1.006,454

All other income from sources outside the United States 163,561 . 203,525,360 . 69,478.627 , 25,609.196 . 23,625.964 , 25.303,922 1,263 25.302,658I Less than $500.NOTE: Data in columns 1-5, 18-21, and 24-26 pertain to the total activity of the domestic parent corporation. Since many corporations compute a foreign tax credit for more than one type of

foreign income, the data In these columns are not additive.

86


Table 2.-Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,by Major Industry[AJI figures are estimates based on samples-money amounts are in thousands of dollars)

Majorindustry

All lndustrl**, total.......................................

Agriculture, forestry and fishing ..................

Mining .........................................................

Metal mining...........................................

Oil and gas extraction .............................All other mining.......................................

Construction ...............................................

Manufacturing .............................................

Food and kindred products .....................

Chemicals and allied products................

Petroleum (including integrated)

and coal products ...............................Primary metal industries .........................Machinery, except electrical...................Electrical and electronic equipmentMotor vehicles and equipment................Transportation equipment,

except motor vehicles .........................Instruments and related products...........All other manufacturing ...........................

Transportation and public utilities...............Water transportation ...............................All other transportation and

public utilities... ...................................Wholesale and retail trade..........................

Wholesale trade .....................................

Petroleum and petroleum productsAll other wholesale trade....................

Retail trade .............................................Wholesale and retail trade.

not allocable.......................................

Finance. insurance and real estate ............

Banking ..................................................

Insurance ................................................

Holding and other investmentcompanies, except bank holdingcompanies ..........................................

All other finance, insuranceand real estate....................................

Services ................................................

Business services ...................................

All other services....................................

Nature of business not allocable ..........

Footnotes at end of table.

Number ofreturns

(1)

4,230

122-7

10312

2181.448

64185

2035

24818425

4763

57788

72824636

-6630198

--

902101143

328

330597210386

--

Income and taxes from returns with Form 1118filed in support of foreign tax credit claimed

Totalassets

Not income(loss deficit)

Income subjectto U.S. tax

(2)

6,329,613,336

36,646,091

17,726,76512,199.83710,118,006

2,015.261,257117.874,640281,771,424

372,473,72919,893,518

162,156.103228,640,447293,319,613

87,522.17150.380.004

401,229,609423,980,913

419,646.944322,278.791143,672,587

137,654.860178,606,204

3,403,516,6831,833.411.5911,255.022.166

21,155,139

293,927,787116,276,442

22,255,24494,021,198

--

(3)

240,666,986

3.014,219

1,987,067568.646701,855

161,794,61012.077,85926.389,265

24,274.9902,101,968

18,507.04813.885,25913,163,167

10,107,9245,592,933

35,684.19525,571,009

25,417.03414,883,2186.385,886

5,965.8418,497,332

28,695.17010.390.33513,105.881

1.849,968

3.348,9865,803,7622,197,6653,606,097

--

(4)

226,312,631

2,723.769

1,939,634393.179647,059

154,838.30411,507,17625,452.092

23,785.1141,966,196

17.979,59512.473,16612,944.561

9,353.5095,475,112

33,901.78322,944,540

22,807,18614,200,873

5.977,146

5.560,9768,223.727

25.254.3159.665,400

10.840.085

1,635.878

3,112,9535,499,3122.099,0473,400,265

--

Foreigntax

credit

claimed

(5)

27,110,216

702.684

575,35335,33892,380

21.887,4361,269,9203,071.341

4,565,965209,829

4.560,5831,421,9681,978,488

385,8731,003.9403,419.529

419,834"10,069

409.7651,037,975

719,399

614,314318,576

2,370,6991.328,655

645,570

142,316

254,158578,165274,996303,169

Totalforeign

taxes paid

or accrued

(6)

9,392,281

-3,830543.085

404,67713,30711,293

6,290.774320.662818,245

1,992,83560,553

1,048.834359,897576,715

87.081316.958708,994103,023

94,239594,148490,924

382.681103,224

1,586.0491,029.432

405.549

37.387

113,681260,078151.546108,532

--

Computation offoreign tax credit

Totaltaxes

deemedpaid

Reductionin taxes

Carryover

(7)

20,034,920

'18.057325.443

316,5846,427

38,86917.448,499

933.1942,758,143

3.515.598172,548

3.487.2981,178,0391,341,649

301,439755,998

3,004,593411,697

410.931501,288267,722

192.729233,565

--

927.151352.646279,084

148,461

146.960363,916158.463205,453

--

(8)

1,703,792--

140,827-15,873124,954

----

1,498,343493

11,994

1,473,678--

3.950449

5,733

1,8772

1662,319

2,01962,05762,057

'59,5882.468

--

--

216--

209

7

3030

Total

(9)

3,932,681

308,733-111.171

169,19828.36451.042

2,995.717122,084124.166

1,956.44728,184

246.13398.640

128.494

88.72550,481

152,36232.468

31.118190,129155,873

138.22934,255

260.665144,39991.896

13,993

10,37793,71022.49371,218

--

87


Table 2.-Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,by Major Industry-Continued(All figures are estimates based on samples--money amounts are in thousands of dollars)

Majorindustry

All Industries, total.......................................

Agriculture, forestry and fishing ..................Mining .........................................................

Metal mining ...........................................Oil and gas extraction .............................At[ other rnining.......................................

Construction...............................................

Manufacturing.............................................

Food and kindred products.....................

Chemicals and allied products................


and coal products...............................Primary metal industries .........................Machinery. except electrical...................Electrical and electronic equipmentMotor vehicles and equipment................Transportabon equipment.

except motor vehicles.........................Instruments and related products...........All other manufacturing...........................

Transportation and public utilities ...............

Water transportation...............................

All other transportation and

public utilities......................................

Wholesale and retail trade..........................

Wholesale trade.....................................

Petroleum and petroleum products

All other wholesale trade....................

Retail trade.............................................

Wholesale and retail trade,

not allocable .......................................

Finance, insurance and real estate............

Banking ..................................................

Insurance ................................................

Holding and other investment

companies, except bank holding

companies ..........................................

All other finance, insurance

and real estate ....................................

Services......................................................

Business services...................................

All other services ....................................

Nature of business not aflocable................


1983

(10)

469,384

34,444

20.073-

423,629

41O.T71123-

11.696--

1.039

5,111

-

5.111

-

3.486

-

3,272

170

45

2,714

-

2.714

-

1984

11 11

409,818-

30,513

17,640

-69345,698

-

455

326,374350158222

16,874-

1,265538

-

538

15,020

15,020

7,603

7.418

-

-

17.016

11,253

4,735

1,001

27

963

963

Computation of foreign tax credit-Continued

Carryover-Continued

1985

k2l

419,530

-31.467

15,100-

28330,839

672

3,038

282,970193908

34,439-

7,653--

965

1,651

-

1,651

26,292

25,113

24,626

1,179

-

27,405

20,657

6.198

493

57

1.848

1.017

832

-

1986

"4 (15)

2,205,184

154,749-39,74766,64928.35347,299

1,657,555

100,748112,638

1987 Yearunknown

(13)

203,511

-45,987

29.&%

(1)103,336

2,366

3,813

65.119709

1,55617.811

--

7.505128

4.329

1.932

--

1,932

16,595

15.565

7,505

1,030

28.125

16,087

11,729

263

46

7.535

33

7,503

--

225,455-

11.5731,383

17911

3,646

134,66018,298

4,221

69,1815.077

10,5357,302

233

10,395828

8,589

1,989

1,989

18,042

6,290

6.290

11,752

-

48,745

11,789

32,399

4,521

36

6,801

3.622

3.179

--

802,03221,731

232,97538,866

128.261

34,603

49,525136,175

21,247-1,350

19.897

114.181

93,885

*1,495

92,390

20.295

--

135,888

84.614

33,563

7,545

10,167

73,849

17,822

56,028

--

Total foreigntaxes

(16)

31,656,290

'22,3031,036,434*222.P31765,50648,097

101.20425,236,647

1,375,447

3,688,560

5,991,202261,285

4,778,3151.636,1262,041.124

475,3681,123,4363,865,784

544.869

'10,600

534.268

1,223.507

852,462

1 41,292

711,171

371,045

-2,773,650

1,526,478

776,320

199,834

271.018

717,674

332.471

385,202

-

Adjusted totaltaxable income

from foreign

sources

(17)

99,875,060

2.127.395*271,566

1,741.738114,091336.540

71.527,0723.955,252

9,946,935

13,928,567724,062

14,149.7535,446.7196,792,541

1,822.0033.442,621

11,318,618

2.869,251*89,985

2,779.266

3,553,322

2.472.051

*351,291

2,120,760

1,081,271

-

16.884,331

12,198,801

3,084,415

532,354

1.068,760

2,508.617

1,143,479

1,365,139

Totaltaxable

incomefrom all

sources

(18)226,638,849

2,723.769*390,956

1.939,634393,179670,356

154,828.01411,509.453

25,442,350

23,785.1141.966,196

17,979.59412,473,16612,944,561

9.353.5095,475,112

33,898.959

22,944,540

137,354

22,807,186

14,299,785

5,980,198

5.560,981

8,319,586

-

25,471,537

9,665,400

11,031,728

1,661,456

3,112,953

5,496,389

2,096,124

3,400,265

88


Table 2.-Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,by Major Industry-Continued(All figures are estimates based on samples-money amounts are in thousands of dollars)

Majorindustry

All industries, total...............................................................

Agriculture. forestry and fishing ..........................................Mining .................................................................................

Metal mining ...................................................................Oil and gas extraction....................................................

All other mining ..............................................................Construction.......................................................................

Manufacturing....................................................................Food and kindred products ............................................

Chemicals and allied products.......................................Petroleum (including integrated) and coal productsPrimary metal industries .................................................Machinery, except electrical ..................................

Electrical and electronic equipment................................Motor vehicles and equipment........................................

Transportation equipment, except motor vehicles..........Instruments and related products...................................All other manufacturing ..................................................

Transportation and public utilities .......................................Water transportation .......................................................All other transportation and public utilities ......................

Wholesale and retail trade ..................................................

Wholesale trade............................................................ -Petroleum and petroleum products............................All other wholesale trade ...........................................

Retail trade .....................................................................

Wholesale and retail trade, not allocable .......................Finance, insurance and real estate....................................

Banking..........................................................................Insurance.......................................................................

Holding and other investment companies,

except bank holding companies.................................

All other finance, insurance and real estate...................

Services.............................................................................Business services ...........................................................

All other services ............................................................Nature of business not allocable.........................................

Adjustmentsto

totaltaxableincome

(191

171,952

23.29846.89936,7976,1691,817

2

2,115

98,9113.052

595,859

2.691

2,114

4573153153

Totaltaxableincome(low

adjustments)

(20)

226,466,897

'204,4602.723.769

1,939,634393,179647,059

154,781,11511.472,65625,436.18223.783,2971,966,196

17.979.59412,473,16412,944,5619,353.5095,475,112

33,896,84422.944,540

.137,35422,807,18614,200.873

5,977.146

5,560,9768,223.727

25,468,8469,665,400

11,029,614

1,661.4533.112,3805,496,2362,095,9713,400.265

.. ILess than $500.Data should be used with caution because of the small number of returns on which it is based.

NOTE: Detail may not add to totals because of rounding.


U.S. taxesbeforecredits

121)77,450,286

925,272

658,787133,858222.818

52,775.4853,903.8208,648,2308.086.939

668.5826,116,2164,232.7404.508.6773,183,1611.871.865

11.555,2557.823,210

'46,6967.776.5144.889,6982,033,449

1.891,9512,856,249

8.884,7673.387.0003.895,214

556,0491,046,5051,859,836

704,7801,155,056

Limitation

(22)

31,749,355

723.241

592.38238,607

113.75824,165,133

1,338.9933.380.1094.725.291

246.1874.788,2601,751,5702,364.813

621,0531,148,3473,800,510

978.149

952,0991,195.069

827,844

708,405367.225

3,753,2172,143,8361,086,634

169,059353,689797,514353,893443,621

Foreigntax

credit

(23)

27,111,797

-21,042702.684-91,992575,35335,33892.380

21.888,5621,269,9203,071,4284,565,965

209,8294,560,5831,421,9681,978.488

385.8731,004.9483.419,559

419.&94'10,069409.765

1,038.112719,537105,086614,451318,576

2,371,0171.328,655

645.888

142,316254,158578,165274,9%303,169

Totalcredits

with respectto sourcesof income

_(N)

27,111,797

702,684

575,35335,33892.380

21,888,5621,269,9203.071,4284,565,965

209,8294,560,5831,421,9681,978,488

385,8731,004,9483,419,569

419,834

409,7651,038,112

719.537'105,086614,451318,576

2,371,0171,328,655

645,888

142,316254,158578.165274.996303.169

Reduction incredit due tointernational

boycottoperations

(25)

1,263

1,126

87

1,00830

137137

137

Form 1118foreign

taxcredit

claimed

(26)

27,110,534

'21,042702,684

575,35335.33892,380

21.887.4361.269,9203.071,3414,565,965

209,8294,560,5831,421,9681,978,488

385.8731.003,9403,419,529

419.834

409.7651,037,975

719,399105,086614,314318,576

2,371,0171.328,655

645,888

142,316254.158578,165274,996303.169

89


Table 3.-Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,by Income Type and Selected Major Industry[AJI figures are estimates based on samples-money arnounts are in Oxxtsands of dollars]

Income type andselected major industry

All income types, total

All industries, total .....................................

Agriculture, forestry and fishing ...............Mining ......................................................

Oil and gas extraction..........................Construction .............................................Manufacturing..........................................

Food and kindred products..................

Chemicals and allied products .............


and coal products ............................

Primary metal industries ......................

Machinery, except electrical ................

Electrical and electronic equipment

Motor vehicles and equipment.............

Transportation equipment,

except motor vehicles......................

Instruments and related products

Transportation and public utilities ............

Wholesale and retail trade .......................

Wholesale trade ...................................

Petroleum and petroleum products..

Retail trade ........................................ ;.

Finance. insurance and real estate ..........

Banking................................................

Insurance .............................................

Services...................................................

Passive incorne

All industries, total.....................................

Agriculture, forestry and fishing...............

Mining......................................................

Oil and gas extraction ..........................

Construction.............................................

Manufacturing ..........................................

Food and kindred products ..................

Chemicals and allied products.............


and coal products............................


Machinery, except electrical................


Motor vehicles and equipment.............




Transportation and public utilities............

Wholesale and retail trade.......................

Wholesale trade...................................


Retail trade..........................................

Finance, insurance and real estate..........

Banking ................................................

Insurance .............................................

Services ...................................................


Number ofreturns

(1)

4,230

122103218

1.448

64185

20

35

248

184

25

47

63

88

824

636

-6

188

902

101

143

597

63S

*10.9

(1)

*15

365

25

66

13.9

44

so

7

12

14

15

60

47

(1)

13

127

7

23

35

Income and taxes from returns with Form 1118

filed in support of foreign tax credit claimed

Totalassets

Net income(less deficit)

Irxxxne subjectto U.S. tax

U2

6,329,613.336

36.646,09117.726.76510, 118,036

2.015,261,257

117,874,640281,T71,424

372.473,729

19,893.518

162,156,103

228,640,447

293,319.613

87.522.171

50,380,004

423,980,913

322.278,791

143,672,587

'6,017,727

178,606,204

3,403,516,683

1,833,411,591

1,255,022.166

116,276,442

2,474,303,5"

-1,329,383

*9.812.151

(1)

-7.293.998

1,6110,036,6113

73,466.352

227,978,826

363,722,988

-5,051,854

94.724.760

187,922,469

283,220.595

61,022,292

41,561,857

231,014,286

184.384,367

42,005,669

(1)

142,378,698

362.501,534

61,792,728

290,429,089

67.931.163

U3

240,666,911115

3,014,2191.987,067

701.855161,784.610

12,OT7,85926.389,265

24,274.9W

2,101,968

18.507,048

13,885.259

13,163,167

10,107.924

5,592,933

25.571.009

14,883,218

6,385,886

*420.045

8,497,332

28,695,170

10,390.335

13,105.881

5.803,762

155,241,298

* 1 93,524

'433.127

(2)

'415.084

126,783,219

8,541,346

20.409,654

23,955,848

*816,740

13,469,503

10.330,204

12,870,895

7,985,250

4.934.350

14,234,669

7,329,653

2,337,896

(1)

4,991.756

3,766,831

331,887

2,546.859

2,085,191

(4)

226,312,631

2,723.7691,939.634

647.059154.838,30411,507.176

25,452,092

23.785,114

1,966,196

17,979,595

12.473,166

12.944,561

9,353,509

5,475,112

22,944,540

14,200,873

5,977.146

*416.170

8,223.727

25,254,315

9,665,400

10.840,085

5,499,312

147,333,7"

'185,051

'255.106

(1)

'384,049

122.009,168

8.439,626

19,687,409

23,490,994

*784,798

13.118,156

9.039,875

12.664.808

7.574,227

4.849.990

11,796,401

7,003,735

2,212,879

(1)

4.790.856

3.682.217

305.863

2,539,157

2.018.066

Foreigntax

credit

claimed

(5)

27,110,216

702.684575.353

92.380

21,887,4361,269,9203,071.341

4.565,965

209,829

4,560,583

1.421.968

1,978,488

385.873

1.003,940

419,834

1.037.975

719,399

*105.086

318,576

2,370.699

1,328.655

645.570

578.165

20,282,162

'69.149

(1)

'68,797

18,850,421

911,183

2,655,006

4,548,237

* 1 04,628

3,637,750

936,448

1.939,461

351.956

931.052

332,402

348.571

135.724

(1)

212,847

315.405

21.620

225,648

276,548

Total

foreigntaxes paid

or accrued

J6)

9,392,281

543,085404,677

11.293290,774

320.662818,245

992,835

60,553

48.834

359,897

576,715

87,081

316,958

103,023

594,148

490,924

'108.243

103,224

586,049

29,432

405,549

260,078

139,018

-6

(1)

126,371

6,706

11,932

8.496

'2.063

25,044

5,042

49,446

1.465

3,220

1,807

3,193

2,588

(1)

605

4.333

79

2,778

2.012


Totaltaxes

deemedpaid

Reduction

in taxes

Carryover

20,034,920

325.443316,584

38,86917,448,499

933,1942,758,143

3.515.598

172,548

3,487,298

1,178,039

1.341.649

301,439

755,998

411,697

501.288

267,722

233,565

927.151

352,646

279,084

363,916

267,946

(2)

234,110

6,336

13,673

9,798

26.934

7,414

113,752

4,579

4,058

11,575

5.926

4,829

(1)

1,097

6.912

790

4.468

6.007

(8)

1,703,792

140,827124,954

--1,498,343

49311,994

1,473,678

3.950

449

5,733

1.877

2

2.319

62,057

62,057

'59.588

--

216

--

209

30

6,037

6,030

296

5,733

Total

(9)

3,932,881

308.733169.19851,042

2.995,717

122,084124,166

1,956,447

28,184

246,133

98,640

128,494

88,725

50,481

32,468

190.129

155,873

'17,644

34,255

260.665

144,399

91,896

93,710

64,137

(1)

47,097

687

1,565

16,264

78

1.390

25.360

2

-

478

3,474

718

(1)

2,756

8,045

28

7,879

1,854

90

Table 3.-Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,by Income Type and Selected Major Industry-Continued[All figures are estimates based on samples-money amounts are in thousands of dollars]


-filediri support of foreign tax credit claimed

Income type and

selected major industry

High withholding tax Interest

All Industries, total....................................

Agriculture. forestry and fishing...............

Mining......................................................


Construction.............................................

Manufacturing ..........................................





Primary metal Industries ......................



Motor vehicles and equipment .............






Wholesale trade...................................


Retail trade..........................................


Banking ................................................

Insurance.............................................

Services ...................................................

Financial services Income

All Industries, total.....................................


Mining......................................................


Construction.............................................

Manufacturing..........................................








Motor vehicles and equipment .............

Transportation equipment.

except motor vehicles ......................




Wholesale trade...................................


Retail trade..........................................


Banking ................................................

Insurance .............................................

Services...................................................


Foreign

tax

credit

claimed

(5)

9,424,536

(2)

45,351

49

8,082.444

192,796

786.106

118.458(2)

70,998

210,421

130.655

(2)

79,766

996,473

667,881

323,954

761,003

(1)

3,579.433

1.905.166

Total

foreign

taxes paid

or accrued

C6)

46,275

(2)

1,396

47

13.741

54

3,356

197

(2)

315

2,068

(2)

so

3,331

2.450

(2)

Sal

27,170

17,416

9.034

620,718

(2)

(1)

60.479

(2)

45

17

(2)

484

-7,900

46.584

5,092

23

152,983

147,403

(2)

5,580

1,404,417

998,057

311,085

2.454

Computation of

foreign tax credit

Total

taxes

deemed

paid

Reduction

in taxes

Carryover

1,750

(2)

206

137

1

8

7

(2)

90,912,920

-

283

283

(2)

1,125

199

926

802,709

160,662

(2)

5

2

(2)

985

110,694

42,266

16,529

16,529

592,762

344,6.54

124.225

30.872

Total

-D9_

13,930

(2)

3.048

1,759

--

209

(2)

92(2)

1,247

(2)

99

999

328

(2)

671

8,026

3,791

4,131

236,457

(2)

36,809

(2)

(1)

(2)

820

33.971

--

2,069

498

(2)

1,571

197.370

134,880

55.185

--

91

Number of

returns

Ul

371

(2)

4

97

110

7

20

311

--

(2)

5

1DO

(2)

16

4

(1)

7

4

6

4.9

11

6

(2)

5

174

74

47

11

Total

assets

L2)

2,273,932,229

(2)

12.697,247

165,485

724.306.094

14,605,493

62,152,594

169.713,521

(1)

24,834.960(2)

54,748,302

(2)

52,348,140

143,633,107

29.800.405

(1)

113,832,703

1,338.766,226

845,443,436

490.554,126

4,175,957,672

--

(2)

91,231

917,677,262

(2)

88,258,268

106,278.819

(2)

101,253,517

276,586.439

59,717.506

26,319,669

'103,706,200

204,950,911

101,987,973

(2)

102,962,938

2,888,393,354

1,729.848,712

972,374.192

60,113.115

Net income

(less deficit)

L3)

72,286,763

(2)

635,563

6,769

53.426,284

2,248,088

5,336.207

9.714.067

M

3,305,396

(1)

7,382,001

(2)

2.752,049

4,356,056

1,396,219

(2)

2.959,836

10,756,879

4,259,032

6,397,790

98,609,989

(2)

6,516

62,981.201

(1)

8,223,692

4.774,493

(2)

12,161,581

12.632.028

7.975,897

1,454,738

4,984.427

2,938.996

(2)

2,045,431

21.595,796

9,428.738

9,858,806

1,918.122

Income subject

to U.S. tax

U4

6,681

51,540.572

2,226,998

5,122.862

9,534298

(2)

2,952,481(2)

6,858,269

(2)

2.733,691

4.040,918

1,276,976

(2)

2.763,943

9,007,260

3,928.981

4,990,184

68,078,216

(1)

403.860

7.567,081

1,437,998

4,742.504

2,771.453

(1)

1.971.051

18,881,314

8,769.859

7,976.505

1.831,527

4.628,830

(2)

11.991.435

12.426.391

(2)

6.226

60.696.269

(2)

7,988.021

1,539,479

(2)

374,493

(2)

2,779,972

-

(2)

12

9.824,085

(2)

1.154,804

345,350

203.633

558,123

525,789(2)

32,334

2,157.671

1,325,406

593,588

116.049


92


Table 3.-Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,.by Income Type and Selected Major Industry-ContinuedLAJI figuresare estimates based on samples-money amounts are in thousands of dollars)

Income and taxes from returns vAth Form 1118filed in support of foreign tax credit claimed

Number of

returns

(1)

32---

-16(2)(2)

4(2)

400(2)

-72)

4199

1844

127

162010

7

I )1244

38

(1)6

108139

23

Totalassets

U2

693,787,014---

3,124,206,551

(1)*11,269,013

(2)

6,034,4061.462,315,6611

58,013.676197,806.480

360,259,9077.778,694

66,290,610166,752.053

38,289,954

(1)193,863,936140,744,60926.006,804

(2)

1'14,737,805

1,302,297.7351.068,167,887

171.907.9136,835.273


U3

33,066,703

-

14.399,680( 2)

(2

1,780,898( 2)

(2)

(1)

133,822,966(2)

'817,921

( I )412,812

107,561,4697,661,565

16.405,152

23,715.021923.763

11.674,6577,166,409

12,836,291

6,142.555

( I )11.596,0053,783,7161.339.168

2)

2,444,5488,990,9225.744.3041.603,916

528,263

Income subject

to U.S. tax

t4)

32,306,131-

26,279.604(2)

(2)

14.277,481(1)

126,004,468(1)

(2)

387.936103.450,751

7.505,63415.759,811

23,250,167. 907,86811,584.1996,145,476

12.628,799

5,629,906

( I )9,135.3903.496,8861,248,294

(2

2,248.5928.245.7855,258,4131,461.336

515.757

Foreigntax

creditclaimed

4,687,222

4.264,670

(1)2)

2.849.883(2)

19,655

(2 )

(1)

(1)

292,775

( I )(2 )

(2)

19,422,9242)

(2)

72.47016,970,157

1,001.3712,239.034

4,539,911114,065

3,526,577698.249

1,936,641

302.060( 2 )

228.261208,973124,6W

84.3081.669,1521.173,590

263,563108,670

Totalforeign

taxes paid

or accrued

IN

30,257-

167,4682)

(1)

808137,080

3,13041.285

43,2933,4922,3021,228

16,956

187

( I )6,022

844672(2)

17318,3915.4107,514

878


Totaltaxes

deemed

paid

t7)

6,692

-

4.704(2

3,428

( I )(2)

(1)

435

( 2)

(2

689,218(2)

2)

15555,60418,787

102,008

344,2633.3632.853

11,81137,799

1,320( 2)

10,38020.4966,305

14,19189.7916,630

53,4064,840

Reductionin taxes

LO)

14-

2962)

-

8080-

(1)--

202

20214

Total

_(9)_

Income" andselected major industry

Shipping income

All Industries, total .....................................

~kgriculture, forestry and fishing ...............Mining......................................................

(M and gas extraction ..........................Construction .............................................Manufacturing..........................................

Food and kindred products ..................Chemicals and allied products .............Petroleum (including integrated)

and coal products ............................Primary metal industries ......................Machinery, except electrical ................Electrical and electronic equipmentMotor vehicles and equipment .............Transportation equipment.

except motor vehicles......................Instruments and related products

Transportation and public utilities............Wholesale and retail trade .......................

Wholesale trade ...................................Petroleum and petroleum products..

Retail trade ..........................................Finance, insurance and real estate ..........

Banking................................................

Insurance.............................................Services ...................................................

Dividends from each noncontrolledsection 902 corporation

All industries, total .....................................


Oil and gas extraction..........................Construction : : ...................

Manufacturing..........................................Food and kindred products..................Chemicals and allied products .............Petroleum (including integrated)

and coal products ............................Primary metal industries......................Machinery, except electrical ................Electrical and electronic equipmentMotor vehicles and equipment .............Transportation equipment,

except motor vehicles ......................Instruments and related products

Transportationand public utilities............Wholesale and retail trade.......................

Wholesale trade...................................Petroleum and petroleum products..

Retail trade.: ........................................Finance. insurance and real estate..........

Banking .......................................

Insurance.............................................Services ...................................................


Carryover

1,129

-

---

-

-

66,265

(2

(9)

-32.8741.262

15,566

2,1511,4761,2311.9584,800

268

(1)3.3835,888

9892)

4.8992.7171.267

31


Table 3.--Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,by Income Type and Selected Major Industry--Continued[All figures are estimates based on samples-money amounts are in thousands of dollars]

income and taxes from returns with Form 1118filed in support of foreigntax credit claimed


Dividends from an IC-DISCor forryw DISC



Mining ......................................................

Oil and gas extraction..........................

Construction .............................................Manufacturing..........................................

Food and Idndred products ..................


Petroleum (including integrated)and coal products............................

Primary metal industries ......................Machinery. except electrical ................Electrical and electronic equipment

Motor vehicles and equipment .............Transportation equipment,

except motor vehicles ......................


Transportation and public utilities............Wholesale and retail trade.......................


Retail trade ..........................................Finance, insurance and real estate ..........

Banldng ................................................

Insurance.............................................

Services...................................................

Distributions from a FSC or former FSC

All Industries, total.....................................Agriculture, forestry and fishing ...............Mining......................................................

Oil and gas extraction ..........................Construction.............................................

Manufacturing..........................................Food and Idndred products..................Chemicals and allied products .............Petroleum (including integrated)and coal products............................

Primary metal industries......................


Electrical and electronic equipmentMotor vehicles and equipment .............Transportation equipment.


Instruments and related productsTransportation and public utilities............Wholesale and retail trade.......................


Retail trade ..........................................Finance, insurance and real estate..........

Bairlding................................................Insurance.............................................

Services ....................................


Foreigntax

credit

claimed

(5)

2,068,330

(2)

(2

2,056,97112,851

1,006,4S4

(2)

(2)

(2)

(2)

(2)

(2)

(2)

--

(1)

Totalforeign

taxes paidor accrued

(6)

3,480

2

(2)

3,090-


Totaltaxes

deemedpaid

Reductionin taxes

Carryover

(7)

2,189--

2 )(2)

931-

(2)

2)--

(2)--

(2)

2

(2)

(2)(2)

-

(2)

2)

-(1)

153(2)

(8)

Total

(9)

2,230--

502--

(2)

(2)--

(2)--

(2)

(2)

(2)

--

93

Number ofreturns

(1)

47--

2)(2)

224

2)

(2)-

(2)--

2)

2)

2)

--(2)(2)

--

(2)--

(2)

(2)

Total

assets

(2)

360,043,405

(2)

(2)

357,522,64213,646,723

(2

105,322,944(2)

--

(2)

(2)(2)

(2)

(2)

(2)

--

Net income(loss deficit)

(3)

19,551,0191,620,984

(2)

2)

--(2)

--2)

2

(2)(2)

(2)-

(2)

(2)

13,592,754(2)

(2)

(2)(2)

(2)

(2)

(2)--

(2) 1


(4)

16,866,902

(2)

(2)

18.733,831

1,619,340(2)

2)

--(2)

--2)

2

(2)

(2)(2)

---

(2)

-(1)(2)

13,194,380(2)

(2)

(2)(1)

(2)

(2)

(2)

--

(2) 1


Table 3.-Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,by Income Type and Selected Major Industry-Continued(All figures are estimates based on samples--money amounts are in thousands of dollars]

Income type and

selected major Industry Number ofreturns


filed in support of foreign tax credit claimed

Totalassets

All other Income from sourcesoutside the U.S.


Agriculture. forestry and fishing...............Mining......................................................

Oil and gas extraction..........................Construction .............................................

Manufacturing ..........................................Food and kindred products..................Chemicals and allied products .............Petroleum (including Integrated)

and coal products ............................Primary metal Industries ......................Machinery, except electrical ................Electrical and electronic equipmentMotor vehicies and equipment .............Transportation equipment.


Transportation and public utilities ............Wholesale and retail trade .......................

Wholesale trade ...................................

Petroleum and petroleum products..Retail trade ..........................................


Banking................................................Insurance .............................................

SerAces...................................................


(1)

3,404.8

11499

1071,287

54174

2033

23615922

436071

747564

.6182512

1780

558

(2)

3,577.748,709-1,481,15236,052,25617,592.9529,649.421

1,984,197.261108,601,264274,838.412

372,473,72919,844,698

161,306,650227,617,668292.326,689

87,090.03350.211,973

346,713.548307.607,326132.052,347

-6,017,727175,554,980781.322.868153.936,149445,851.217110,724.877 1


(3)

214,922,276

2.987,4001.975,517

656,911159.623.920

11,486.67625,882.443

24,274,9902,099,68918,416,761

1

3,783,81313,102,558

10.078,6295,580,205

22.516,76913,475,1315,401.015

8,074,1169.863,8851,168,8275,313.5495,491,578


(4)

203,552,716

2.701.7301.929,096

610.792153,019,97211,047,34925,047,246

23,785.1141,963,917

17,895,86412.383.24212.884,576

9.325,3395,464.156

20.002.38512,801,7195,001,142

7,800,5769,016.211

918,7485,064,6415,201,646

Foreigntax

credit

claimed

(5)

25,302,658

702.590575.308

92,25621,814,6781,264,4233,026,668

4.565,965209.682

4,558,8921,420.8621,963,761

385,5751,003.908

4D6,2311,032,727

714.239

318,488662,277

37,047387,947570,920

Totalforeign

taxes paidor accrued

(6)

385,065-3,435

537,422403,147

10.0965,948,998

309.988761.613

1.940.69054.176

115,582345,413460.533

78,240313.594

78,462433.405337,420

95.985131,473

8,47074,872

241,773


Totaltaxesdeemed

paid

Reduction

in taxes

Carryover

(7)

18,264,262.16.689

317,103310,344

36,84816,492.199

907,5952,642.148

3.158.101168,332

3,456,5261,158,1151,079.390

253.274751,768387.422455,255236,978'66,599218.277236.561

37596,059

322,184

(8)

1,697,445

140,827124,954

1,492,219413

11,980

1,473,678

3.950153

1.8T72

2,31962.05762,057

7

16

Total(9)

3,550,743

295.083169,01947,936

2,876,675120,194106,826

1,938,03226.405

243.99494,02564,363

86,71650.48128,299

175,802151,444-17,"0

24,35844,509

4,43424,67090.290

94


Table 3.--Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,by Income Type and Selected Major Industry--Continued(AJI figures are estimates based on samples--money amounts are in thousands of dollars]


All income types, total

All Industries, total.....................................Agriculture, forestry and fishing...............Mining......................................................

Oil and gas extraction ..........................Construction.............................................

Manufacturing ..........................................Food and kindred products ..................Chemicals and allied products .............Petroleum (including integrated)

and coal products............................Primary metal industries ......................Machinery. except electrical ................Electrical and electronic equipmentMotor vehicles and equipmentTransportation equipment,


Transportation and public utilities............Wholesale and retail trade.......................


Retail trade..........................................Finance. insurance and real estate ..........

Banking ................................................Insurance .............................................

Services...................................................

Passive Income


Agriculture. forestry and fishing ...............Mining......................................................

Oil and gas extraction ..........................Construction.............................................Manufacturing..........................................

Food and kindred products ..................Chemicals and allied products .............Petroleum (including integrated)

and coal products ............................Primary metal industries ......................Machinery. except electrical ................Electrical and electronic equipmentMotor vehicles and equipment .............Transportation equipment,




Retail trade..........................................Finance, insurance and real estate..........

Banking................................................Insurance ..............................

Services .................................... 1


1983

(10)

"9,364

34,44420.073

423,629

410,771123

11,696

5.111

3,486

3,2722,714

1984

400,818

30.51317,640

69345.698

455

326,374350158222

16,874

53815,02015,020

17.01611,2534,735

963


Carryover-Conlinued

1985

(12)

419,530

31.46715,100

28330,839

6723,038

282,970193908

34,439

7,653

1,65126,29225,113

1.17927,40520,6576,1981,848

12,983

11,804

11,803

1,179

1.179

1986 1987 Year unknown

(13)

203,511

45,98729,556

(1)103.336

2.3663,813

65,119709

1.55617,811

7,505128

1.93216,59515,565'8,0601.030

28.12516,08711,7297.535

3,100

2.052

16

1,030

1,030

4

225,455

11.573179

3,646134.66018,298

4,221

69,1815,077

10.5357,302

233

10,395828

1,98918,0426.290

11.75248,74511,78932,3996,801

3,014

96

2,409

2

5071

(2)

505

2,205,184

154.74986.64947,299

1,657,555100,748112,638

802,03221.731

232,97538,866

128,261

34,60349.52521,247

114.18193,885-1,495

20.295135.88884,61433,56373.849

45,040

'83(2)

'3,106'30.715

5921.565

781.372

25,360

2

478759717

(1)42

8,04528

7.8791,854

Total foreigntaxes

(16)

31,656,290

1,036,434765,506101,2134

25.236,6471,375,4473,688.560

5.991,202261,285

4.778,3151,636.1262,041,124

475.3681,123,436

544,8691,223,507

852,462*141,292371,045

2,773,6501,526,478

776,320717,674

465,064.6"

(2)

13.72927,171

34,558

52.05513,550

182.824

6.0467,279

13,86012,5938,135

(2)

4,45819.283

89615,1189.873


from foreignsources

"7

99,875,060'68,531

2,127,3951,741,738

336.54071,527,0723,955,2529,946,935

13,928.567724,062

14.149.7535,446,7196,792,541

1,822,0033,442,6212,869,2513.553,3222,472.051*351,291

1.081,27116,884.33112.198.801

3,084,4152,508,617

3,631,348

128,205288,670

426,006*25,471300.615293,144735,728

362,76879,256

232.978121,05293,609

(1)27,443

146,6082.839

102,08786.029

Totaltaxable income

from allsources

(18)

226,638,849*204,460

2,723,7691,939,634670,356

154,828.01411,509,45325,442.350

23,785.1141,966,196

17,979.59412,473,16612,944,561

9,353,5095,475,112

22.944.54014,299.7855,980,198*419.217

8,319,58625.471.5379,665,400

11,031.7285,496.389

147,449,658185,051

(2)

8,441.90319,681,487

23,490,994*784,798

13,118,1569,039,875

12,664.808

7.574.2274,849,990

11,796,4017,102.6412,215,926

(2)

4,886,7153,682.221

305,8632,539.1572.015,143

95


Table 3.-Total Assets,'Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,..by Income Type and Selected Major Industry-Continued[All figures are estimates based on samples--money amounts are In thousands of dollars]



All Industries, total ....................................

Agriculture. forestry and fishing ...............

Mining......................................................

Oil and gas extraction..........................

Construction.............................................Manufacturing ..........................................

Food and kindred products ..................Chemicals and allied products .............Petroleum (including Integrated)

and coal products............................Primary metal industries ......................Machinery. except electrical................Electrical and electronic equipmentMotor vehicles and equipment.............Transportation equipment,



Wholesale trade...................................


Retail trade..........................................

Finance. Insurance and real estate..........

Banking ................................................

Insurance.............................................

Services ...................................................



Agriculture, forestry and fishing...............

Mining~................. ...................................

Oil and gas extraction..........................Construction .............................................

Manufacturing............................ .............

Food and kindred products..................Chemicals and allied products .............Petroleum (including integrated)

and &at products ............................Primary metall Industries......................Machinery, except electrical ................Electrical and electronic equipmentMotor vehicles and equipment .............Transportation equipment,


Transportation and public utilities ............Wholesale and retail trade.......................

Wholesale trade ...................................Petroleurn and petroleum products..

Retail trade ..........................................

Finance, Insurance and real estate ..........Banking...............

**............*'*'** .............Insurance .............................................

-Services...................................................

Footnotes at and of table.

1983

(10)

170

1984

0 1)

IZ745

(2)

12.74511,2531.344


Carryover-Continued

1985

(12)

25,499

(2)

1986

(14) (15)

10,214(2)

3,048

1987 Year unknown

(13)

22,67S

3,716(2)

2

883.626

113,511

38,890

1,758

209

(2)

92(2

1.247

(1)99

911328(2).

5834.3993,779

620

136,476

36,809(2)

(1)

(1)

820-1,17433,971

25,49920.657

4,350

22.67516.0876,396

1,882311(2)

1,57137,00911,77825,224

188188(2)

99,27275,10517.871

Total foreigntaxes

(16)

61,955(2)

4,650

4715.637

553.574

204(2)

407(2

3,316(2)

1494,6123,060

(2)

1.55236,32021.40614,091

2.659,885

257.950(2)

50

19(2)

2.289

191,248

47,35823

-2,478171,582164,430

(2)

7,1522.194,5491.477,590

490,49533,325


from foreignsources

(17)

334,823( 2)

12,294

26287,265

40014,736

3,051(2)

*41,4881,654

15,394(1)

1.05520,91417,194

(2)

3.719209,638146,59960,058*2,336

16,304,263

(2)

201.076,009

(2)

25.319

(2)

17.538*115,183719,338

155,4071.469

*29,642569.912548.873

(2)

21,04014,539,74311.364.3002,221,246

88.795

Totaltaxable income

from allsources

(18)

68,337,000( 2)

403,860

6,68151,542,8492,229.2755.122,862

9,534,298(1)

*9,897,5742,952,481

6.858,269(1)

2.733.6914,136.7771,276,976

(2)

2,859,8029.167,9083,928,9815,150,832*234,946

91,099,710

(2)

6,22660,690.348

(2)

7,9.82,100

4,628.830(2)

11.991,435*5.813,06812,426.391

7,567,0811.437.998

*4.554,0244.742,5042,771,453

(2)

1,971,05119.074,0348,769.8598.169,2211,831,527

96


Table 3.-Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,by Income Type and Selected Major Industry-Continued[All figures are estimates based on samples--money amounts are in thousands of dollars]


Shipping IncomeAll Industries, total .....................................


Oil and gas extraction ..........................Construction .............................................Manufacturing ..........................................

Food and kindred products..................Chemicals and allied products.............Petroleum (including integrated)

and coal products..................Primary metal industries......................Machinery. except electrical................Electrical and electronic equipmentMotor vehicles and equipment .............Transportation equipment,


Instruments and related productsTransportation and public utilities............Wholesale and retail trade....................... .

Wholesale trade....................... ...........Petroleum and petroleum products..

Retail trade ..........................................Finance, insurance and real estate

Banking ................................................Insurance .............................................

Services...................................................



Agriculture, forestry and fishing ...............

Mining ......................................................Oil and gas extraction ..........................

Construction .............................................Manufacturing. .........................................

Food and kindred products..................Chemicals and allied products.............Petroleum (including integrated)

and coal products............................Primary metal industries................Machinery, except electricalElectrical and electronic equipmentMotor vehicles and equipment .............Transportation equipment,


Transportation and public utilitiesWholesale and retail trade.......................

Wholesale trade................ .................Petroleum and petroleum products..

Retail trade.. ........................................Finance. insurance and real estate..........

Banking.................................. .............Insurance .............................................

Services...................................................


1983

(10)1984

16

Co~~reign tax credit--Continued

Carryover--Continued

1985

(12)

25

25


(13)

113

(14)

961

(1)

6,0382

2)

4,748335225

649

1,231873230

2 1

103

103491

314

(15)

168

50,063(2

2

28,126867

15,341

1,5021,476

1,0854.571

258(1)

3.3835,785

989( 2)

4,7962,2261,267

449

Total foreigntaxes

(16)

38,064

5.7052 )2)

3,5702)

(1)

265(1)( 2)

2

912,645

2)

2 1823

725,47823,040

158,858

389,7068,3326.385

14,99759,556

1,765( 2 )

19.78527.2287.965

( 2 119.263

110,69713,30760.7486.310


from foreignsources

(17)

577,05S

57,926( 2)

2

22.869( 2 )(2)

479,637(2)

2 )2

5,79822

2,395,6812

2)

1,1921.446,290

43.065303,388

757.18916,63510.45521.78592,752

3.020( 2)

44,39873,37130,474

( 2)

42,897797.412573,392142,916

9,763

Totaltaxable income

from allsources

(18)

32,306,131

26.279.6042)2

14,277.481( 2)(2)

1,823,969222

126,171,855

2

411.233103.447,107

7,507,91115,753,890

23,250.167907,868

11,584,1996,145.476

12,628.799

5,629,906( 2 )

9.135,3903,595,7931,251.342

( 2)

2,344,4518,294.6135.258,4131.510,159

515,757

97


Table 3.-Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,by Income Type and Selected Major Industry-Continued[All figures are estimates based on samples-money amounts are in thousands of dollars)

Income " andselected major industry

Dividends from an IC-DISC

or former DISC

All industries, total............................ ........

Agriculture, forestry and fishing ...............

Mining......................................................Oil and gas extraction ..........................

Construction .............. ..............................

Manufacturing ..........................................Food and kindred products ..................Chemicals and allied products .............Petroleum (including integrated)

and coal products............................Primary metal industries ............Machinery, except electricalElectrical and electronic equipmentMotor vehicles and equipment..........

Transportation equipment,except motor vehicles......................

Instruments and related products _Transportation and public utilities............

Wholesale and retail trade .......................Wholesale trade .......... ........................

Petroleum and petroleum products..Retail trade .............................

Finance. insurance and real estate..........Banking................................................

Insurance .......................................... -

Services .......... ........................................

Distributions from a FSC or former FSC:

All industries, total.....................................Agriculture, forestry and fishing...............Mining ................................ .............

al and gas extraction ..........................

Construction .............................................Manufacturing .................................

Food and kindred products ..................Chemicals and allied products.............

Petroleum (including integrated)and coal products............................

Primary metal industries ................... _Machinery, except electrical................Electrical and electronic equipmentMotor vehicles and equipment .............Transportation equipment.




Retail trade..........................................

Finance, insurance and real estate ..........Banking ................................................

Insurance .............................................Services ...........................................


1983

(10)

151

151

(2)

1984

268

268

Computation of foreign tax c edit-Continued

Carryover--Continued

1985

(12)

28

28


(13) (14)

28

28

(15)

Total foreigntaxes

(16)

153(2)


from foreignsources

(17)

87,913

(2

(2)

80,778

301(2

381,651(2)

Totaltaxable income

from allsources

(18)

18,886,902

13,194,380(2)

(1)(2)

(1)

(2)

(2)

(2)

98



Income type andselected major Industry

All other Income from sourcesoutside the U.S.


Agriculture, forestry and fishing...............Mining......................................................

Oil and gas extraction..........................Construction.............................................Manufacturing ..........................................

Food and kindred products ..................Chemicals and allied products.............Petroleum (including integrated)

and coal products............................Primary metal industries ......................Machinery, except electrical................Electrical and electronic equipmentMotor vehicles and equipment.............Transportation equipment.

except motor vehkles......................Instruments and related products


Wholesale trade ...................................

Petroleum and petroleum products..Retail trade ..........................................

Finance, insurance and real estate ..........Banking ................................................

Insurance .............................................Services ...................................................


1983

(10)

469,063

34,44420,073

423,478

410,771123

11.545

5,111

3.317

3,2722,714

1984

M

396,789

30,51317.640

69345,430

455

326.374350158222

16,606

53815,02015,020

4,271

3.391948

Computation of foreign tax credil-Continued

Carryover-Continued

1985

A"2

380,996

31,46715.100

28319,007

6723,038

271.167193908

34,439

7.625

1,65125,11325,113

1,9w

1,8481,824


(13)

177,594

45,98729,556

(1)101,238

2,3663.813

63.067709

1.55617,795

7.477128

1,93215.56515.565

5,449

5.3337,422

J1 41

172,609

10,8801

3,646127.376

17,8673.996

66.1235,0779,3046,426

3

10.367828

1.98915,4635.978

9,4857.619

3,6335,837

_05)

1,961,492

141,79186,64744.193

1,560,14699,29095.523

800,53019,952

232.06735.14364,360

33.09649,52517,078

104.64189,768

14,87421,9464,4347,193

71,547

Total foreigntaxes

(16)

27,510,624

1,008,781757,55694,880

23.825,6531,337,3653,498,607

5,563,145248,914

4,712,1521.597.4001,604,286

416,3531,115,842

491,8641.002.406

663.785

338,621412,53513,279

195,601654,231


from foreignsources

(17)

75,962,308

2,040,3691.679,670

295,356

65,249.3953,765,8599,115.073

12,705,639677,254

13.747.9215.014.9545.212,969

1,118,5153,360.5622,081,5422.756,0591.769.887

-295.687986,172

1,185.120109,534

554,4362,293,470

Totaltaxable income

from allsources

(18)

203,688,921'198,264

2,701,7301,929,096

634,089153,009,460

11.049.62725,037.504

23,785,1141.963,917

17,895,86312,383,24212,884,576

9,325,3395.464,156

20,D02,38512,900,6305,004,195

7,896,4359,040.717

918,7485,063,5685,201,646

99


Table 3.-Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,by Income Type and Selected Major Industry-Continued[All figures are estimates based on samples--money amounts are in thousands of dollars)


All Income types, total

All Industries, total ............................................................Agriculture, forestry and fishing.......................................Mining ..............................................................................

Oil and gas extraction..................................................Construction ....................................................................Manufacturing..................................................................Food and kindred products..........................................

Chemicals and allied products .....................................Petroleum (including integrated) and coal productsPrimary metal industries..............................................Machinery. except electrical ........................................Electrical and electronic equipment .............................Motor vehicles and equipment .....................................Transportation equipment, except motor vehiclesInstruments and related products ................................

Transportation and public utilities ....................................

Wholesale and retail trade...............................................Wholesale trade ...........................................................

Petroleum and petroleum products.........................

Retail trade ..................................................................Finance, insurance and real estate .................................

Banking.......................................................................Insurance .....................................................................

Services...........................................................................

Passive Income

All Industries, total ............................................................Agriculture, forestry and fishing .......................................

Mining ..............................................................................Oil and gas extraction ..................................................

Construction....................................................................Manufacturing ..................................................................

Food and kindred products ..........................................

Chemicals and allied products .....................................

Petroleum (including integrated) and coal productsPrimary metal industries ..............................................Machinery, except electrical........................................Electrical and electronic equipment................. ...........Motor vehicles and equipment .....................................Transportation equipment, except motor vehiclesInstruments and related products................................

Transportation and public utilities ....................................Wholesale and retail trade .........................................

Wholesale trade ...........................................................Petroleum and petroleum products .........................

Retail trade..................................................................

Finance, insurance and real estate .................................

Banking ............... .......................................................

Insurance .....................................................................Services ...........................................................................


Adjustmentsto totaltaxableincome

(19)

171,952

23.29846.89936,7976,1691.817

2

98.9113.062

95.8592,691

2,114153

122,974

225

2

98.9073.047

(2)

95.859449

"596

Totaltaxable

income (lessadjustments)

(20)

226,466,897

2,723.7691,939.634

647.059154,781.115

11,472.65625,436.18223,783,297.

1,966.19617,979,59412,473,16412,944,5619,353,5095,475,112

22,944.54014.200.8735,977.146

8,223.72725,468,8469,665,400

11,029,6145,496.236

147,326,684* 185,051'255,106

2)

122,DO5,5228.441.903

19,681,48723,490,994

-784,79813,118.156

9.039,87212,664,808,

7,574,2274,849,990,

11,796,4017,003,7352,212,879

(1)4,790,8563,681.772

305,8632,538,7122,015.048

U.S. taxesbefore credits

(21)

77,450,286

925,272658,787222,818

52,775,4853,903.8208,648.2308.086,939

668,5826,116,2164.232,7404,508.6773.183.1611,871.8657,823,2104.889.6982,033,"9

2,856,2498,884,7673,387,0003,895.2141,859,836

50,374,120.'62.917

(2)

41,612,6202.873.4626,700,4187.986,938

4.460.8913.059,3074,410.2062,575,2791,658,9214,035,759,2,400,498

753,147( 2)

1,647.3501,359.824

103,958970,624685,200


UrnitationForeign tax

credit

Total creditswith respectto sourcesof income

(221

31,749,355

723.2415§2.382113,758

24,165,1331,338,9933,380,1094.725.291

246,1874,788.2601,751.5702.364.813

621,0531,148,347

978,1491.195,069

827,8441 19,439367,225

3,753,2172,143.8361,086,634

797,514

1,328,265

'1.548

(2)

13,5011,082,924

43.59498,339

144.842

102,26799.286

256,352123.34227.067

88.32841.257

31.850( 2)

9,407

53.629965

38,56429.252

(23)

27,111,797

702,684575.35392,380

21.888.5621'269,920

3,071.4284,565.965

209.8294.560,5831,421,9681,978.488

385,8731,004,948

419,8341.038,112

719,537

318,5762.371,0171,328,655

645,888578.165

"1,592

'497

(2)

383.647

13,440

25.035

24.795

'2,938

51,164

12,236

182.0246,0466.088

13,6778,8187.577

(1)1,241

18,729

43415,090

8,977

L24)

27,111,797

702,684575,35392,380

21.888,5621,269,9203,071,4284,565,965

209,8294,560.5831.421,9681,978,488

385.8731.004,948

419,8341.038.112

719.537

318.5762,371.0171,328,655

645,888578,165

20,283,411

'69.149(2)

18,851.533

911,183

2.655.0944,548.237

3.637.750936,448

1,939.461

351.956932.060

332,402348.708135.862

( 2 )

212.947

315,405

21,620225.648

276,548


boycott operations

(25)

1,263

1.126

87

1.008

137137

1,249'

1,112

87

1.008

137137(2)

Form 1118foreign

tax creditclaimed

(26)

27,11 0,5V1

702,684575.35392,390

21,887,4361.269,9203.071,3414,565.965

209,8294,560.5831,421.9681,978,488

385.8731.003,940

419,8341,037,975

719.399105.086318.576

2,371.0171,328,655

645,888578.165

20.282,162

'68,79718.850.421

911,1832,655.OD64,548,237

3,637,750

936,4481.939.461

351.956

931.052332,402348,571

135,724

(2)212,847315,405

21

'

620

225,648276.548

100


Table 3.--Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,by Income Type and Selected Major Industry--Continued[All figures are estimates based on samples-money amounts are in thousands of dollarsl



All Industries, total............................................................Agriculture, forestry and fishing.......................................Mining ..............................................................................

Oil and gas extraction ..................................................Construction....................................................................Manufacturing..................................................................



Petroleum (including integrated) and coal products

Primary metal industries ..................... ........................

Machinery, except electrical .........................................

Electrical and electronic equipment .............................

Motor vehicles and equipment .....................................

Transportation equipment, except motor vehiclesInstruments and related products ................................

Transportation and public utilities....................................Wholesale and retail trade...............................................

Wholesale trade...........................................................Petroleum and petroleum products.........................

Retail trade..................................................................Finance, insurance and real estate.................................

Banking........................................................................Insurance .....................................................................

Services ............................................. .............................


All Industries, total............................................................Agriculture, forestry and fishing.......................................Mining ..............................................................................

Oil and gas extraction ..................................................Construction........................... ........................................Manufacturing..................................................................Food and kindred products ..........................................Chemicals and allied products .....................................

Petroleum (including integrated) and coal productsPrimary metal industries ..............................................Machinery, except electrical .........................................Electrical and electronic equipment .............................Motor vehicles and equipment .....................................Transportation equipment, except motor vehiclesInstruments and related products ................................

Transportation and public utilities.....................................Wholesale and retail trade...............................................

Wholesale trade.............. ...........................................

Petroleum and petroleum products.........................Retail trade ..................................................................

Finance, insurance and real estate.................................Banking.......................................................................Insurance .....................................................................

Services............................................................... ...........



(19)

102,245

(1)

--6,169

6,169

--95,859

217--

217--

1,997-

(2)

1,997

1,993

Totaltaxable


(20)

68,234,755(2)

403,860

6.68151,536,681

2.229.2755,116.6939.534,298

(2

2,952.481( 2)

6,858.269

(2)2.733,6914,040,9181,276,976

(2)

2,763.9439,167,6913.928.9815,150.616*234.946

91,097,720-

(2)--

6.22660,690.348

(1)

7,982,1004,628,830

(2)

11,991,435*5,813,06812,426.391

7,567.0811.437.998

4,742,5042,771.453

(1)

1.971,05119.072.0368,769.8598,167.2271.831,527


(21)

23,285,4114( 2 )

137,312

2.06717.546.176

761,1551,747,7203,241,662

1,003,973( 2 )

2,331,811(2)

929.4541,378,211

436,436(2)

941,7753,174,8851,404,0651,740,844

31,232,257

(2)-

2.11720,758,220

(1)

2,723.3391,573,802

(2)

4.080.443*1.976,4744,328.8552,572,807

495,677

1,616,198944,006

( 2)

672,1926.623,7243.009,8002.888,246

622.071


LimitationForeign tax

credit

Total creditswith respect

to sourcesof income

(22)

113,718(2 )

4,177

8929,967

1375.3001.037

( 2 )

1 4.109

563( 2 )

5,234( 2)

3587.1395,874

(2)

1.26570,83149.68120,137

3,532,427--

(1)--7

367.943( 2 )

8,7083,396

(2)

5,965'39.170247,05652,838

506

193,778186,613

(1)

7,1642,930.5711,863,177

752,36430,216

(23)

51,558(2)

3,999

4714,748

543,270

152( 2)

'5,396314(2 )

3,316(2)

1493,3582.398

(2)

95928.71814,89613.144

'342

2,360,503--

2)--

(1)254,130

(2 )

5019

(2)

1,564*9,773

190.30347,358

2

169.089164,315

( 2 )

4,7741,933,8761.302,943

408.89029.137

(24)

9,425,079(2)

45,351

498.082.531

192,796786.193

1,539,479(2

*3.059.621374.493

( 2)

118,458(2 )

70.998210,558130,792

(1)

79,766996,790667,881324,271

12,780,514-

(1)

129.824.172

(2 )

1,154.891761.003

(2)3,579.433*672.223

1,905,166345,350203,633

558.261525,927

( 2)

32,3342.157.9881.325,406

593,905116,049


boycott operations

(25)

2252

87

87

2

2

2

137137

2

225--

2)-

87(2)

87-

(2)-

137137

2

Totalforeign

tax creditclaimed

(26)

9,424,854(2)

45,351

498,082,444

192,796786.106

1,539,479(2)

374,493( 2 )

118.458( 2 )

70,998210,421130,655

( 2)

79.766996,790667,881324,271

12,780,290

2

129.824,085

( 2 )

1.154.804761,003

(2)3,579,433

1,905,166345,350203.633120,062558,123525,789

(2)

32,3342.157.9881,325.406

593,905116,049

101


Table 3.-Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,by Income Type and Selected Major Industry-Continued[All figures are estimates based on samples-money amounts are in thousands of dollars]



Totaltaxable


Shipping Income

All Industries, total ............................................................

Agriculture, forestry and fishing.......................................

Mining .......................................... . ..................................

Oil and gas extraction..................................................

Construction .....................................................................

Manufacturing ..................................................................

Food and kindred products..........................................

Chemicals and allied products.....................................Petroleum (including integrated) and coal products

Primary metal indushies, .......................................Machinery, except electrical ........................................Electrical and electronic equipment .............................Motor vehicles and equipment .....................................Transportation equipment, except motor vehiclesInstruments and related products ................................

Transportation and public utilities....................................

Wholesale and retail trade...............................................Wholesale trade ..........................................................


Retail trade ..................................................................


Banking.......................................................................Insurance .....................................................................

Services...........................................................................


All Industries, total............................................................

Ag6cullure, forestry and fishing .......................................Mining ................................................................... ..........

Oil and gas extraction ..................................................

Construction ....................................................................

Manufactuting ..................................................................


Chemicals and allied products.....................................Petroleum (including integrated) and coal products

Primary metal industries..............................................

Machinery, except electrical........................................Electrical and electronic equipment.............................

Motor vehicles and equipment.....................................

Transportation equipment, except motor vehicles

Instruments and related products................................


Wholesale and retail trade ...............................................Wholesale trade...........................................................

Petroleum and petroleum products .........................

Retail trade..................................................................

Finance, insurance and real estate.................................Banking ........................................................................Insurance ................................................. ...................

Services ........................ .................................... ............


(19)

122,2082

23,298

-

98.9073.047

(2)

95,8594

(20)

32,306,131

-

26,279,6042)

2)

14,277,4812)

2)

----

(2)

--

3,503,217(2)

126,049,647(2)

*646,201(2)

387,936103,447,107

7.507.91115.753.89023.250,167

907,86811,584,1996.145,476

12,628,7995.629,906

(2)

9,135,3903.496,8861.248.294

( 2)

2,248.5928,294,6095,258,4131,510,159

515,757


(21)

10,995,596

8,935,065

22

4,854.3442 )

2)

620,1492)

43,093,3412)

*219,4562)

131,89835,301,5672,554,9475,365,0077,905,057

308,6753.938,6692,090,8274,397.8361,914,168

( 2)

3.098.3111,193,294

426,738( 2 )

766,5562,930,6321,787,854

624,228175,424

Computation of foreign tax creclit-Confinued

Umilation

(22)

195,580

162,439(2)

(2

810,523(2)

(2)

405469,048

14,682102,897257,444

5,6623.5536.844

32,1541,027

(2 )

15,06224.93510.350

( 2 )

14,585289,966194,95267,5463,199

Foreign taxcredit

(23)

32,346

-

4,7742

2

2,642( 2

265

( 2)

(2)(2)

S65,213

(1)*7.362

( 2)404

444,07113,74095,705

250,5144,2593.1356,529

32,113926(2)

11,75317,4322,847

(2)

14,58580,5317,384

46,1143,116

Total creditswith respectto

sources

of income

(24)

4,687,447

4.264,7572)

2)

2,849,8832)

2)

--

(2)

--

19.6552)

2)

2)

--

292.775(2)

(1)

(1)

19,423,179( 2 1

-149.136( 2 )

72,47016,970,275

1,DO1,3712,239,1214.539,911

114.0653,526,577

698,2491,936,15411

302,060( 2)

228,261209,111124,803

( 2)

84,3081.669,1521,173,590

263,563108.670


boycott operations

(25)

225

8722

2

2)

--

25S2)

-(2)

--

137137

2

Totalforeign

tax creditclaimed

(26)

4,687,222

4,264,670

2)2)

2,849,8832)

(1)--

(1)-

19,422,9242)

2)

72,47016.970,157

1.001.3712,239,0344,539,911

114.0653.526.577

698,2491,936,641

302,060(2)

228.261208,973124,666

( 2)

84.3081,669,1521,173.590

263.563108,670

102




Dividends from an IC-DISCor former DISC

All Industries, total............................................................

Agriculture. forestry and fishing.......................................Mining ..............................................................................

Oil and gas extraction ..................................................Construction....................................................................Manufacturing..................................................................

Food and kindred products ..........................................Chemicals and allied products ....................................Petroleum (including integrated) and coal productsPrimary metal industries ..............................................Machinery. except electrical ........................................Electrical and electronic equipment .............................Motor vehicles and equipment.....................................

Transportation equipment. except motor vehicles

Instruments and related products ................................

Transportation and public utilities....................................

Wholesale and retail trade ...............................................

Wholesale trade...........................................................


Retail trade ..................................................................

Finance, insurance and real estate.................................

Banking.................................................. ....................

Insurance .....................................................................

Services....................................................................

Distributions from a FSC or former FSC:


Agriculture. forestry and fishing .......................................

Mining..............................................................................

Oil and gas extraction ..................................................

Construction ....................................................................

Manufacturing ..................................................................


Chemicals and allied products...................... ..............

Petroleum (including Integrated) and coal products

Primary metal industries................................ .............

Machinery, except electrical........................................

Electrical and electronic equipment.............................

Motor vehicles and equipment.....................................

Transportation equipment. except motor vehicles

Instruments and related products................................


Wholesale and retail trade...............................................

Wholesale trade ..........................................................


Retail trade.............................................. ...................


Banking .......................................................................

Insurance .....................................................................

Services........................................................LLLL~~



(19)

Totaltaxable

income (lossadjustments)

(20)

18,886,902

(2 1

(2)

18,733,8311,619,340

(2)

2)

--(2)

-

2)2)

2 1

2)

2)

--

(2 1

(1)2)

13,194,380

2 1

2

(2

(2)

(1)(2 1

(2)

--


(21)

6,428,811

4,4116,3711

2

2

(2

(1)

(1)( 2 1

2)

--

(2)

Computation of foreign tax credit- ontinued

LimitationForeign tax

credit

Total creditswith respect

to sourcesof income

(22)

29,872

(2)

2

27,467102

2

129,775

(2)

--

(2)

2 )

2)

2)

2)

(1)-

(23)

6,468

(2)

2)

4,277--

2)2)

--2)

-1 )(2 1

(2)

--

(1)2

(2)

--

2)

(2 1

153

(2 1

(2 1

( 2)

(1)(2)

(2)

2

(2)

(24)

2,068,330

(1)(2 1

1,006,541

2

(2

(2

(1)( 2 )

(2)

(2)

--


boycott operations

(25)

Totalforeign

tax creditclaimed

(26)

2,068,330--

(2)

(1)

2,056,97112,851(2)

(1)--

(2)

--

(2)

--

2)

---

(2)

1,006,454

(2

(2)

(1)(2 )

(2)

(1)--

(1)

103


Table 3.-Total Assets, Foreign Taxes, Taxable Income, Foreign Income, U.S. Taxes, and Foreign Tax Credits,

by Income Type and Selected Major Industry-Continued(All figures are estimates based on samples-money amounts are in thousands of dollars]

Income " andselected major industry


Totaltaxable

income (lossadjustments)

All other Income trorn sourcesoutside the U.S.


Agriculture, forestry and fishing .......................................

Mining ..............................................................................Oil and gas extraction................................... ..............

Construction ....................................................................Manufacturing....................................................... ..........



Petroleum (including integrated) and coal productsPrimary metal industries ..............................................Machinery, except electrical ........................................Electrical and electronic equipment.............................Motor vehicles and equipment .....................................Transportation equipment, except motor vehiclesInstruments and related products................................


Wholesale and retail trade ..................................... .........Wholesale trade........................................... . ............


Retail trade..................................................................Finance, insurance and real estate.................................

Banking ................................................... ..................Insurance ........................................ ............................

Services ...........................................................................

I Less than $500.

(19)

163,561

23,29840,50636.797

1,817

98,9113.052

95,859694

117153

(20)

203,525,360'198,264

2,701,7301.929,096

610,792152,968,95411,012,83025,037.50423.783.297

1,963,91717.895.86312,383,24212,884,5769.325,3395,464.156

20,002,38512,801,7195,001,142

7,800,5769,040,023

918.7485,063,4525.201,493 1


(21)

69,470,627-67.265918,042655.216210,691

52.154,9983,747.5048,512.6788.086,939

667,8076.084.2244,201.8594,488,2143,173,5591,868.1406,791.4344,398.4481,702.495

2.695,9533,177.477

315,0181,843,4381.760,271


Limitation

(22)

25,609,196

693,653571,280

99,75622,038,3701,274.5543,096.9504,309,496

230.2664.651,5631,605,7071,818.454

381,8661.120.318

702.103923.876589,072

'100,533334,804406.24534.334

206,775724,456

Foreign taxcredit

(23)

23,62S,9"

689,516569.42186,487

20,782,7621.241,4362.947,0684,287,1143

201.9654,499,2891,393.1171.570.048

327,943998.729375.254836.211539,196100,533297,016308.897

2,997162,384527,092

Total creditswith respectto sourcesof income

(24)

25,303,922.20,978702.590575.30892,256

21,815.8041.264,4233,026,7554,565.965

209,6824,558.8921.420.8621.963,761

385.5751,004,916

406,2311.032,865

714.377

318,488662,27737,047

387.947570.920


boycott operations

(25)

1,263

1,126

87

1.008

137137

Totalforeign

tax creditclaimed

(26)

25,302,656

702,590575.30892.256

21,814,6781,264.4233,026.6684,565.965

209,6824.558.8921,420,8621,963,761

385,5751,003,908

406,2311.032,727

714,239

318,488662,27737.047

387,947570.920

2 Data deleted or combined to avoid disclosure of information on individual corporations.

* Data should be used with caution because of the small number of returns on which it was based.

NOTE: Data by type of foreign income are not additive, since many corporations compute a foreign tax credit for more than one type of income.

104

Documents

Corporate Foreign Tax Credit, 1988: An Industry Focus · Corporation (IC-DISC) or a former DISC, taxable income attributable to the "foreign trade income" ofa Foreign Sales Corporation